Google, Microsoft, Yahoo interested in purchasing Hulu
This entry was posted on Tuesday, July 5, 2011.
Hulu appears to be attracting the attention of many possible purchasers after it was proposed that the company was thinking about the sale of its video streaming business.
According to the most recent reports on the Los Angeles Times, possible buyers include some big names of Google, Microsoft, Yahoo and other various companies operating in technology and media.
At this stage Google is appearing to be the most probable vendee as the search engine goliath has already a substantial presence in the online video market through YouTube and an affiliation with Hulu would further unite its force in Internet broadcasting. Yahoo is also very concerned about bringing premium content to its drooping nevertheless still famous portal. Microsoft could gain from beefing up their video streaming offerings through the Xbox Live platform.
Morgan Stanley and Guggenheim Partners are the financial advisors of Hulu and are reportedly arranging the meetings with various industry behemoths desiring to earn at least $2 billion for its current proprietors Walt Disney Co., NBC Universal, Comcast Corp., Providence Equity Partners and News Corp.
The equilibrium between these "conventional media" companies' concerns and Hulu's existence as a refreshing novel media venture is frequently deemed as an obstruction when it comes to decision-making. A takeover could merge control of Hulu beneath a singular entity and assist it in focusing on its strategy better, but negotiating with content suppliers and keeping them happy may demonstrate to be even less manageable than it already is as these companies follow their own streaming plans.
The two media companies behind Hulu, Walt Disney Co. and News Corp., lately renewed contracts to make Hulu more appealing for a sale. But without semipermanent content deals in place, Google or whomever winds up purchasing the company would run a risk of paying through the nose for shows when current content deals lose validity.